PKH Ventures withdraws IPO after poor response from investors

economictimes.indiatimes.com:

PKH Ventures decided to withdraw its initial public offer (IPO) after a poor response from investors even on the last day of bidding on Tuesday. The issue, which opened on June 30, was undersubscribed at just 65% at the close. While the non-institutional portion was fully subscribed, the retail investors' category was on the cusp of sailing through at 99% bids.

The big disappointment, however, was the qualified institutional buyers, whose part was subscribed just 11%. «PKH Ventures has informed the exchange that on account of non-fulfilment of commitment by the qualified institutional buyers, the issuer has now decided to withdraw the issue in consultation with book running lead managers and the registrar. Hence, the IPO of PKH Ventures Limited will be treated as withdrawn,» said NSE.

Analysts had mixed views on the IPO on lofty valuations, despite the cushioning of the diversified business model and asset-light construction segment. The IPO comprised fresh equity issue of up to 1.82 crore shares and an offer for sale (OFS) of up to 73.7 lakh equity shares by selling shareholders. The company has offered its shares in the price range of Rs 140-148.

PKH Ventures is in the business of construction and Development, hospitality and management services. The civil construction business is executed by its subsidiary and construction arm, Garuda Construction. The company does its civil construction works for third-party developer projects and has also been awarded two government projects and three government hotel development projects.